The term “inflation,” for most, brings to mind images of 1920s Germany or, more recently, Venezuela where the currency has been so devalued that a loaf of bread or a cup of coffee can cost million. Though not to the same degree as in these cases, nearly all economies around the world experience inflation and keeping it in check often requires diligent efforts on the part of governments.

Iran has struggled with relatively high inflation since the late 1970s, but seemed to have been making substantive progress in curtailing inflation during President Rouhani’s first term. However, the United States' monetary policies and its November 2018 re-imposition of economic sanctions has sent Iran’s economy into a tailspin, sending inflation soaring to high levels. What follows is a brief overview of Iran’s experience with high inflation over the past three decades and the ways in which its government and population have reacted to it and how they plan to approach the coming uncertain, potentially difficult years.

MYTH: Iran, like many other countries in the Middle East is primarily made up of arid, lifeless desert.

FACT: Iran’s geography is very different from those of surrounding nations. Compared with nearby Saudi Arabia (95% desert), Turkmenistan (80% desert) and Iraq (40% desert), only about 22% of its land area is desert. The majority of Iran’s territory consists of incredibly diverse landscapes, most of which teem with life. These include rangelands, forests, wetlands and even glaciers home to at least 8,000 different plant species, 293 species of bird, 219 species of reptile, 112 species of fish and nearly 300 other mammalian species.

Given the broadening conversation regarding the concept of regime change in Iran, and pursuant to AIC’s mission to further dialogue and understanding between the US and Iran, our media guide series may be a helpful platform on which to elucidate the details and complexities surrounding the concept of regime change in Iran. We hope this guide may help our readers and constituents better understand the issues involved.

FACT: Iran’s health care system is far more modern than many Westerners expect. Iran’s family planning and legal organ trade programs are examples of Iran’s particularly developed, and even progressive, medical system.

Although Iran’s 1979 revolution is known primarily for having transformed the country into a conservative Islamic theocracy, it also led to significant, progressive reforms on the country’s approach towards healthcare. The Islamic Republic’s constitution declares access to medical care a right for all citizens, and over the past three decades, Tehran has made notable investments in expanding health coverage nationwide, to good effect.

Iran spends about 7% of its GDP each year on health services and has an estimated 954 hospitals, 3,700 clinics and 6,400 rehabilitation centers. About 60% of Iran’s hospitals are state controlled with the remainder run by private companies or non-governmental organizations, including charities.

MYTH: The Joint Comprehensive Plan of Action (JCPOA), or “Iran Deal,” is a “bad deal” because (1) it does not prevent Iran from creating a nuclear weapon; (2) the International Atomic Energy Association is not able to thoroughly inspect some facilities and Iran can easily cheat without repercussions; (3) the nations involved were required to remove all sanctions on Iran, providing an influx of money to be spent on terrorist organizations and other military engagements throughout the Middle East; and (4) documents recently revealed by the Israeli government prove that the Iran Deal was “built on lies.”

FACT: While the JCPOA has flaws such as the sunset provisions of certain clauses, the JCPOA on the whole is a strong deal that cuts off all pathways to Iran creating a nuclear weapon. It establishes clear restrictions on Iran’s nuclear program that are thoroughly verified by the International Atomic Energy Association to ensure Iran cannot cheat. The nations involved removed only sanctions related to Iran’s nuclear program, keeping in place sanctions related to human rights violations and other issues. Finally, documents revealed by the Israeli government did not include significant new information regarding Iran’s nuclear program.

Although Iran is primarily thought of as an oil-producing country, it is also one of the Middle East’s largest and most diverse agricultural producers. Due to the country’s expansive geography and extremely varied climate, Iran is able to produce a wide range of agricultural products, including grains such as wheat, barley and rice; fruits such as melons and grapes, as well as teas and medicinal herbs.

According to the United Nations Food and Agriculture Organization, close to 30% of Iran’s territory consists of croplands and livestock pastures. From an economic standpoint, the agricultural sector makes up about 10% of Iran’s GDP and employs about 16% of its labor force. Despite its size and importance to the country’s overall economy however, Iran’s agricultural sector still consists primarily of small, privately owned farms, generally no bigger than 24 acres. (The average family farm in the U.S. state of Texas, by contrast, is about 523 acres)

MYTH: Iranian president Hassan Rouhani is not a true political moderate and his promises of reform were disingenuous as evidenced by the results (or lack thereof) of his administration.

FACT: While it is true that Iran has not substantively transformed since Rouhani took office five years ago, some of the actions he has taken, alone and in conjunction with Parliament, suggest that Rouhani’s reputation as a moderate is not completely unfounded and that pro-reform voices may have a stronger presence in Iranian politics than commonly thought.

Like many of its Middle Eastern neighbors, the Islamic Republic of Iran sits atop considerable deposits of fossil fuels. It boasts the world’s second largest reserves of natural gas and the fourth largest reserves of crude oil. Iran extracts an estimated 4.1 million barrels per day of crude oil and nearly 200 billion cubic meters annually of natural gas, making it respectively the world's fifth and third largest producer of these fuels. Oil is critical to the Iranian economy with about half of the country’s total revenue coming from its sale. Until recently, however, natural gas in Iran has been almost exclusively for domestic consumption.

Iran's oil and gas sector has been buoyed by the 2015 Joint-Comprehensive Plan of Action (JCPOA) which relieved U.S., U.N and E.U sanctions under which Iran’s ability to export oil and access foreign investment had been curtailed. With the European market again open to it, Iran’s oil exports have been on the rise. In 2017, the Islamic Republic exported nearly 800 million barrels of crude oil, 80% more than in 2016. These sales netted $41 billion in revenue.

A large state replete with natural resources, Iran is among the most mineral-rich countries in the world, holding approximately 7% of the Earth’s supply with 45 to 60 billion metric tons of 68 different types of minerals. Despite its natural advantages, however, Iran has failed to make the most of its mining sector. Mining employs just 620,000 people in the country and accounts for 0.6% to 1% of GDP. With 90% of Iran’s potential mines unsurveyed, some estimates put the industry’s potential worth at triple its current value. The deputy minister of Iran’s Ministry of Industry, Mines, and Trade, Mojtaba Khosrowtaj, has indicated that copper, lead, and rare earth elements could ultimately generate more revenue than the crude oil industry.

Sanctions are a perennial subject in American political discussion about Iran as the US tries to curtail what it views as Iran’s destabilizing activities in the region. Over the years, many rounds of sanctions have been imposed on Iran, in varying forms. Some have primarily targeted institutions and individuals related to Iran’s nuclear and ballistic missile programs, others have either directly or indirectly affected ordinary Iranian citizens.

This Media Guide will present a brief overview of the history of sanctions on Iran and highlight the effects that American and international sanctions have had upon the broader Iranian economy and average Iranians.

Given Iran’s geographic breadth and its sizable population, the task of maintaining and modernizing its public transportation system is immense. Cities in Iran are linked by 199,000 km of roads and 10,000 km of railroad. The country has over 300 airports. Due to heavy traffic, the metro systems in all major cities are heavily utilized to avoid the congestion above. The Tehran metro, for example, is one of the busiest in the Middle East and estimated to service between two and four million people each day.

While impressive in its scope, Iran’s transportation system is in serious need of attention and improvement. The World Economic Forum’s 2015-2016 Global Competitiveness Report ranked Iran 76 out of 140 for overall infrastructure quality (other industrialized countries in the region received much higher ratings, such as Saudi Arabia at 31 and the United Arab Emirates at 2).

Aspiring to grow its clout across the Persian Gulf and the broader Middle East, Iran has increasingly engaged its military in other countries in the region. From intervening in civil wars to fighting terrorism in foreign states, Iran’s security forces are playing a larger role in regional affairs and have thus emerged as a critical focus of the West.

The U.S. media typically covers Iran’s military involvement abroad as unfoundedly aggressive or destabilizing, without examining the broader role these organizations play within Iran itself, or Iran’s interests and goals for participation abroad. This media guide will focus on the Islamic Revolutionary Guard Corps (IRGC) and the al-Quds force of the military with the aim to demystify these organizations, their role, as well the reasons and timing behind the government’s decisions to use them in foreign interventions.

Iran has a rich textile history. Archeologists can date the country’s textile production back at least 6,500 years. In those early years Persia produced tapestries and carpets for domestic and international markets, which were particularly renowned for their elaborate designs and colors. To this day, Persian carpets are still considered among the most beautiful and well-crafted in the world; many are also regarded as artistic works and showcased in museums and private collections.

Iran’s government structure can be difficult for foreigners to understand. In part, this is due to the intrinsic complexity of Iran’s system, which some argue is due to the combination of modern institutions (like the Majles and Assembly of Experts) with pre-modern ones (like the Supreme Leader).

While this dual nature of Iranian government has contributed to the confusion, a lack of media coverage in the West is also part of the problem. Western media has a mixed record with coverage of the Iranian government – at times covering the democratic process in Iran (as it did recently in the 2017 Presidential elections), but at others, portraying Iran as a dictatorship run by the Supreme Leader. This is unfortunate since understanding Iran’s government structure and process for decision making is crucial in order to interpret the government’s actions and policy positions. With this guide, we hope to provide some foundational information about each government body, its powers, the democratic forces that underlie its authority, and the extent of religious influence in each branch.

Like other countries in the region, Iran faces a severe water crisis due to climate change and poor water management. One of the most visible reminders of this ongoing problem is Lake Urmia. Located in the northwestern corner of Iran, Lake Urmia’s watershed serves an agricultural region with a population of 6.4 million people. Previously one of the largest salt lakes in the world, Lake Urmia was also once a popular tourist destination. However, the last 20 years of environmental conditions and damming of tributary rivers for irrigation have shrunk Lake Urmia’s surface area by 70% and its water volume by 95%.

MYTH: The Iranian government exercises strict control over the press and tightly censors the Internet and media, making communication with the outside world virtually nonexistent. This censorship makes it impossible for Iranians to publicly criticize the government or to obtain international news and perspectives on current events.

FACT: In reality, this is only a partial understanding of access to information in Iran. While harsh policies and tactics used against journalists in the country cannot not be understated, Iranians have found many ways to circumvent state censorship, such as bypassing the Internet firewall or accessing international channels via illegal satellite dishes. A full understanding of media and censorship in Iran requires distinguishing government laws from the practices of average Iranians.

Claiming 21 UNESCO World Heritage sites, Iran’s courtyards and gardens, patterns, textures, and shapes are celebrated and emulated worldwide. In addition to its impressive and historic architecture, however, Iran is also home to a vibrant construction industry with a trend towards modernization. One prime example of a modern gem and model of technological achievement is the Sharifi-ha House in Tehran, designed by Tehran-based firm Nextoffice in 2013: a seven-story home with rooms that rotate and shift at the push of a button. While some Iranians bemoan this kind of change in the architectural landscape, others suggest that modern buildings are more suitable for everyday life and attracting tourists. Even the modern Sharifi-ha House, however, reflects the staying power of traditional Persian architecture since the concept of rotating rooms was inspired by old Iranian mansions, which had both summer and winter living rooms.

Naval incidents between American and Iranian ships in the Persian Gulf have recently received increased media attention. Although such incidents have been occurring for some time, the new US administration and changing political environment in Iran have heightened their significance. In keeping with the goal of our Media Guide series to clarify and explain topics in US-Iran relations, we hope this guide will promote increased understanding of the issues at hand.